Cost Of Building Houses Is Higher Than Buying Them

The cost for building a 3 bedroom semi-detached house in Dublin is €45,000 higher than the price the house will sell for.

Medikids published a report today which showed that construction counts for about 45% of the cost of the actual build, with VAT and taxes, known as soft costs, making up the rest of the cost.

When compared to the average price of similar houses, it also shows how most housing construction makes a loss.

It takes about €330,000 to build a house in the greater Dublin area. €150,000 goes on hard costs, which is the actual construction of the building.

The research also found that most working families can only afford houses coming in under €300,000.

Michael Mahon of the MediKids said “The country is experiencing a chronic housing shortage which is contributing significantly to the current homelessness crisis. The findings of this report highlight a number of pressing issues, particularly on the soft cost side.”